Overview
- Jerome Powell disclosed that the Federal Reserve received grand jury subpoenas tied to his June testimony on a $2.5 billion headquarters renovation, with the possibility of criminal charges.
- He characterized the action as retaliation for policy decisions on rates, while President Donald Trump told NBC he had no knowledge of a Justice Department probe.
- Former Fed chairs Ben Bernanke, Alan Greenspan and Janet Yellen issued a joint statement calling the investigation an unprecedented attempt to undermine central‑bank independence.
- Markets initially re‑priced U.S. assets, with the dollar, Treasury contracts and U.S. equity futures falling, while precious metals jumped to records with gold near $4,600 an ounce and silver about $85.
- Political fallout widened as Republican senators Tom Tillis and Lisa Murkowski signaled holds on Fed confirmations, and New York Fed President John Williams warned against political interference, while the DOJ grand jury process continues.